CS 806P-3 Notice of Lien-Levy, Financial Institutions – Procedures:  Intergovernmental Cases

02/98 Revised 05/27/16 Training Completed 06/10/16

42 U.S.C. 666(a)(17); U.C.A. 62A-11-103(6)&(15), 104; 304.1; 304.5(1)(b); 62A-11-312.5; 313; 78B-12-112; 78B-14-507; URCP 45; R527-430



Interstate Cases


Apply the lien-levy procedures on an interstate case the same as you would on a comparable in-state case to the extent possible.


1.                   If the financial institution has an account with a CSS non-custodial parent (NCP) and the account is in Utah, you may proceed with a lien-levy action even if the NCP lives in another state.


2.                   If the account is in a financial institution located in another state, take the following steps.

a.                   Make the determination that the financial institution actually is outside the State of Utah.

EXAMPLE: You have found a financial institution match for Merrill Lynch with the business address listed in New Jersey.  Upon investigation of the account, you discover that the lien-levy paperwork actually needs to be sent to an address in Utah. Prepare and send the paperwork to the address in Utah.

b.                  Once you have determined that the account is outside of the state, you may send the lien-levy directly to the financial institution in the other state, unless that state has requested that interstate lien-levies not be sent directly to the financial institutions in that state (see step “c”).  The financial institution will then make the determination whether to honor the lien-levy. 


NOTE:   Some financial institutions that are federally chartered (e.g., Wells Fargo) require that lien-levies be sent to the financial institutions in the state where the account is located.  Also, some financial institutions that conduct business in several states will accept direct lien-levies at one location. 

c.                   If the financial institution cannot or will not honor the direct lien-levy request, review the lien-levy action to ensure that it was appropriate based on CSS policies and procedures.  Also determine if there are jurisdictional problems that may be causing the financial institution to not honor the levy request (e.g., the account is exempt from levy due to a unique law in that state.)  If you have determined that a lien-levy action is appropriate, you may ask the state where the financial institution is located to initiate its own lien-levy on Utah’s behalf.  This is not an interstate referral requesting full services, but only a request for the other state to do the levy and send CSS the money.

d.                  If the responding state is unable to process your request via the transmittal, you may send an interstate referral to the responding state and request the other state to do the lien-levy.  Once the responding state sends the money, ask that their case be closed.



Incoming Lien-Levy Only Requests from Other States


The Central Registry Unit (CRU) in the CSS Salt Lake Office will work lien-levy only requests sent to Utah by other states.  These requests involve cases where the bank account is located in Utah, but the NCP and custodial parent (CP) reside elsewhere.  In determining if the account identified is subject to a lien-levy and the process to issue a lien-levy, CRU will follow the same procedures that are used for intrastate case lien-levy actions.  If the NCP requests an administrative review of the lien-levy, CRU may conduct the administrative review.   However, if the NCP requests an adjudicative proceeding, CRU is unable to conduct the review because the case is not a full services case and the office does not have access to the applicable orders, payment histories, etc.  In this situation, the lien should be released and both the NCP and other state notified.  The requesting state may choose to open a full services case with the office and request that the lien/levy be re-issued and to conduct the adjudicative review. 



Lien Only Action on Interstate Cases


If you only want to place a lien on personal or real property that is owned by a non-custodial parent who lives in another state, but you do not want to immediately levy and seize the property, you may file a Notice of Interstate Lien form in the county of the state where the property is located.  This is a lien only federal form.  Likewise, another state may file a Notice of Interstate Lien directly with a Utah county clerk’s office to encumber real or personal property in Utah owned by a NCP on one of their cases.